I am sure we have all enjoyed the Kiwibank adverts that applaud the small cute NZ’er rebelling against the nasty Australian mobsters.
In reality the whole of New Zealand owes a debt of gratitude towards the big 4 Aussie Banks as Westpac, ASB, National/ANZ have been prudent in their lending relative to the global norms. That prudence has translated into relative financial security and thus avoided (again relatively) the financial carnage we see overseas.
In New Zealand leveraged property deals where bankrolled by the Finance Companies whilst the ‘Big 4′ Aussie Banks would only lend if they saw income to service the deal and not by promised capital gains in the future (unless pre sold).
It has been their structural integrity that has kept NZ from being Iceland. Imagine a world where National Bank was still owned by the part Government owned Lloyds in the UK as it was some years before. In that world the National Bank would be hanging onto it’s money for dear life and contagion would be rampart.
The Aussie Banks have thrived in this environment as mentioned in this article in the Australian from the end of Jan. http://www.propertytalk.com/forum/showthread.php?p=160994“On stock market capitalisation, Westpac is now considered the world’s ninth-largest bank, with a worth of $US28.2 billion ($43.2 billion), ahead of Commonwealth Bank at No15, National Australia Bank at No17 and ANZ at No19. Remarkably, all four Australian banks now rank ahead of past giants such as Citigroup and Morgan Stanley in the US, Barclays in Britain and Deutsche Bank in Germany”.
Yes lets commend Kiwibank as well, it’s marketing and deposit /loan ratio are superb, it is also best placed to execute Govt policy as required as well as keeping the Aussie’s competitive.All aside hats off to you Aussies though you have kept us relatively stable in volatile times.
In reality the whole of New Zealand owes a debt of gratitude towards the big 4 Aussie Banks as Westpac, ASB, National/ANZ have been prudent in their lending relative to the global norms. That prudence has translated into relative financial security and thus avoided (again relatively) the financial carnage we see overseas.
In New Zealand leveraged property deals where bankrolled by the Finance Companies whilst the ‘Big 4′ Aussie Banks would only lend if they saw income to service the deal and not by promised capital gains in the future (unless pre sold).
It has been their structural integrity that has kept NZ from being Iceland. Imagine a world where National Bank was still owned by the part Government owned Lloyds in the UK as it was some years before. In that world the National Bank would be hanging onto it’s money for dear life and contagion would be rampart.
The Aussie Banks have thrived in this environment as mentioned in this article in the Australian from the end of Jan. http://www.propertytalk.com/forum/showthread.php?p=160994“On stock market capitalisation, Westpac is now considered the world’s ninth-largest bank, with a worth of $US28.2 billion ($43.2 billion), ahead of Commonwealth Bank at No15, National Australia Bank at No17 and ANZ at No19. Remarkably, all four Australian banks now rank ahead of past giants such as Citigroup and Morgan Stanley in the US, Barclays in Britain and Deutsche Bank in Germany”.
Yes lets commend Kiwibank as well, it’s marketing and deposit /loan ratio are superb, it is also best placed to execute Govt policy as required as well as keeping the Aussie’s competitive.All aside hats off to you Aussies though you have kept us relatively stable in volatile times.
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